Nature and Scope of Sales

Management

MBA III
Punjabi University
 According to a jobs provider company
‘Manpower’, sales positions are the hardest to
fill.
 Sales – one of the most expensive activities in
any firm (constitutes more than 20% of
revenue)
 Starting salaries for sales people higher than
most of other positions
 Many CEOs like Mark Hurd (HP), start in sales
What is Sales Management?
 Sales management is defined as the activities
required to lead, direct, or supervise the
personal selling efforts of an organization.
 Sales management is also defines as the
attainment of sales force goals in an effective
and efficient manner through:
o Planning
o Staffing
o Training
o Leading
o Controlling firm’s resources
Nature of sales management
 Is an art
oConceptual skills
oPeople skills
oTechnical skills
oDecision skills
 Is a science
oIs a process with definite steps
Cont’d…
 Aids in achievement of organizational
objectives
oThrough relationships (both business and
consumer)
oMonitoring performance
oRealize profits
Scope of sales management
Encompasses several activities of a manager
 Manage marketing activities (4 Ps)
 Marketing research and intelligence
 Applicable at all places where selling is
done:
◦ Manufacturing and wholesale
◦ Retail
◦ Services (banking, insurance, software)
Cont’d….
 Employable in firms which have no direct
sales function like for manufacturing
intermediaries
 Has several roles such as recruitment and
selection, training, compensation, appraisal,
motivations, assignment, organizing, etc.
 3 major objectives of sales management:
◦ Sales volume
◦ Contribution to profits
◦ Continuing growth
Cont’d…
 Implement control
◦ Set standards and communicate
◦ Measure and evaluate actual performance
◦ Take corrective action
FIGURE 1.1 A SALES PERSONNEL CAREER PATH

President

Vice President of Marketing

National Sales Mgr.

Zone Sales Manager

Regional Sales Manager

District Sales Manager

Key Account Salesperson

Salesperson

Sales Trainee
FIGURE 1.1 THE SALES MANAGEMENT PROCESS

Sales Management Functions

PLANNING

The conscious, systemic process of making

decisions about goals and activities that an
individual, group, work unit, or organization will
pursue in the future and the use of resources
needed to attain them.
FIGURE 1.1 THE SALES MANAGEMENT PROCESS

Sales Management Functions

STAFFING

Activities undertaken to attract, develop, and

maintain effective sales personnel within an
organization.
FIGURE 1.1 THE SALES MANAGEMENT PROCESS

Sales Management Functions

SALES TRAINING

The effort put forth by an employer to provide

the salesperson job-related culture, skills,
knowledge, and attitudes that result in improved
performance in the selling environment.
FIGURE 1.1 THE SALES MANAGEMENT PROCESS

Sales Management Functions

LEADING

The ability to influence other people toward

the attainment of objectives.
FIGURE 1.1 THE SALES MANAGEMENT PROCESS

Sales Management Functions

CONTROLLING

Monitoring sales personnel’s activities,

determining whether the organization is on
target toward its goals, and making corrections
as necessary.
FIGURE 1.1 THE SALES MANAGEMENT PROCESS

Sales Management Functions

 SALES PERFORMANCE

Sales Management is the attainment of

sales goals in an ethical, efficient, and
effective manner.
FIGURE 1.3 SALES LEADER LEVELS IN THE ORGANIZATIONAL HIERARCHY

CEO

President Top Sales Leaders

(Strategic)

Vice President of Marketing

National Sales Leader

Middle Sales
Zone Sales Leader Leaders
(Tactical)
Regional Sales Leader

First-Line
District Sales Leader
Sales Leaders
Assistant District Sales Leader (Operational)
Nonmanagerial Salespeople
Sales Trainee Salesperson Key Account
Basis of Difference MARKETING SALES MANAGEMENT
MANAGEMENT

1. SCOPE Marketing management is a The scope of sales

very wide term. It includes management is less in
Sales management. comparison to marketing
management. It is a part of
marketing.
2. Evolution It is a new concept in It is an old concept.
comparison to Sales
management.
3. Activities It includes all the activities It mainly includes selling
performed for promoting activities related to transfer of
customer satisfaction. It ownership of goods an
includes activities of consumer services from seller to buyer.
research so as to identify
customers’ need, preferences,
tastes, so that product
planning and development can
be done according to
customer’s preferences.
It includes Selling activities.
Basis of Difference MARKETING
MANAGEMENT
4. Producer V/s Consumer It is customer oriented. It
oriented stresses on consumer
needs, satisfaction and
welfare.
SALES
MANAGEMENT
It is Producer- oriented. Its
main aim is to increase
sales and earn more profits
for manufacturer or seller.

5. Approach to Profit It emphasizes on Profit- It emphasizes on profit

maximization through maximization through sales
promoting customer maximization.
satisfaction.

6.Control Marketing Manager works Sales Manager works under

under the General manager Marketing Manager
of Organization